Can Nvidia stay king of AI chips? Jensen Huang says next boom is just beginning
Nvidia CEO Jensen Huang dismissed concerns about slowing AI growth, forecasting $91 billion in Q2 revenue and unveiling an $80 billion stock buyback while highlighting new AI chip opportunities like the Vera processors, which could unlock a $200 billion market. Rivals like AMD and Intel, along with cloud giants building custom chips, are challenging Nvidia’s dominance in AI inference, though Huang insists demand for Nvidia’s products will outpace supply through the Vera platform’s lifecycle.
Nvidia’s CEO Jensen Huang addressed investor concerns over AI market saturation during the company’s earnings call, insisting the biggest wave of AI spending has yet to arrive. The company reported second-quarter revenue of $91 billion, exceeding analyst expectations of $86.84 billion, with first-quarter revenue hitting $81.62 billion—above forecasts of $78.86 billion. Nvidia’s data center business, the backbone of global AI development, generated $75.2 billion in revenue, reinforcing its dominance in powering AI models for companies like Microsoft, Amazon, and Alphabet. Huang announced an $80 billion stock buyback program and outlined plans for next-generation AI chips, including the Vera processors, which he claims could tap into a $200 billion market beyond existing AI accelerators. Nvidia expects Vera-related sales to contribute $20 billion by the end of the fiscal year, alongside projections that its Blackwell and Rubin AI systems could drive over $1 trillion in cumulative sales from 2025 to 2027. Huang positioned Vera as the second-largest sales contributor after Blackwell and Rubin. Despite Nvidia’s strong performance, competition is intensifying. Cloud providers such as Microsoft and Amazon are investing billions in custom AI chips to reduce reliance on Nvidia, while rivals like AMD and Intel are targeting the AI inference market with lower-cost, energy-efficient alternatives. Industry analysts view inference as the next major battleground in AI, as mainstream adoption demands more efficient hardware. Huang acknowledged supply constraints for the upcoming Vera Rubin platform, suggesting demand will outstrip production throughout its lifecycle. He argued that Nvidia’s growth will outpace broader capital expenditure increases by major cloud companies, citing accelerating AI spending from cloud-focused firms. The company’s aggressive roadmap and expanding product line aim to solidify its lead in the evolving AI landscape, even as competitors and customers push for alternatives.
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